Plan to stop NBN from favouring Telstra

The national broadband network would be barred from giving any preference to
Telstra
over other service providers under a plan put forward on Tuesday to amend the Gillard government’s broadband reforms.

The amendments are the latest step in the slow path to a vote this week on laws to govern the company building the network, NBN Co, and the commercial deals it strikes with Telstra, SingTel Optus and hundreds of smaller broadband providers.

South Australian Senator
Nick Xenophon
stepped up the debate over the reforms by releasing draft amendments that would prevent NBN Co offering any of its wholesale customers a better price than others would pay.

Senator Xenophon is seeking support from Family First senator
Steve Fielding
and the Coalition to prevail as the government bills head to a vote within the next few days.

The government is resisting the changes on the grounds that the NBN Co should be able to offer different prices if there is an economic efficiency – such as volume discounts – to justify the approach.

Telstra is backing the government on the issue and is seen as the most likely company to benefit from favourable treatment because its big customer base could deliver economies of scale.

“I do not believe NBN Co should be allowed to provide some carriers with preferential pricing, terms or conditions," Senator Xenophon said in a statement to The Australian Financial Review.

“Under the current arrangements telcos which show the ability to provide a so-called quantifiable efficiency may be entitled to a better price or service from NBN Co. That’s code for potentially giving advantage to the bigger telcos."